Shein says operating profit fell 50% in H1 2026
The retailer says the external environment will remain uncertain in H2 2026, with tariff headwinds and logistics cost volatility likely to persist.
Fast-fashion company Shein disclosed that its operating profit dwindled by 50.4% during the first half of 2026. The Chinese-founded enterprise reported a net income attributable to shareholders of US$2.3 billion, a notable increase from the US$1.1 billion recorded in the same period a year prior. This marks Shein's inaugural earnings report following its initial public offering earlier this month, which valued the company at roughly US$26.3 billion, a significant decline from the nearly US$100 billion it was worth during private fundraising rounds in 2022.
The retailer also noted a modest 1% year-on-year growth in net revenue, reaching US$20.1 billion. However, its operating income witnessed a substantial downfall of 52.9%. Speaking to the Hong Kong Stock Exchange, Shein's chairman, Sky Xu, expressed cautious optimism about the company's prospects for the remainder of the year, citing the likelihood of persistent tariff headwinds and logistics cost volatility in the second half of 2026.
Despite raising US$1.7 billion in its IPO, Shein's stock price has plummeted by over 27% since its debut.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- Shein says operating profit fell 50% in H1 2026 freemalaysiatoday.com
